According to Anthony Pompliano, crypto investor and entrepreneur, institutional investors who are new to cryptocurrency may have been surprised by Bitcoin’s volatile price. This has led to downward pressure being put on the currency.
Pompliano gave an interview to CNBC Squawk Box Monday. said BitcoinBTCThe current slump shouldn’t surprise anyone. Bitcoiners who have been in the game It’s been a while.
“Over the last decade, Bitcoin has drawn down 30% or more 21 different times,” Pompliano.
“So Bitcoiners are used to this. Now, who’s not used to this are the people who are coming from Wall Street. They’re not used to this type of volatility.”
“These new people are very, very fearful. We’re going into end of year. There’s things around bonuses people are trying to figure out, should I actually sell this asset that I thought I was really excited about? And I think that’s putting some downward pressure on the price,” He added.
The majority of Bitcoin sellers were US-based
Matthew Sigel is the head of research for digital assets at VanEck Investment Manager. said On Monday, Bitcoins’ recent price drop was reported. which saw the token drop to lows Around $82,000 was “overwhelmingly a US-session phenomenon.”
He pointed to tightening US liquidity and widening credit spreads as key drivers, as fears over the large‑scale capital expenditures tied to artificial intelligence collided with a more fragile funding market.
Crypto volatility pushes the price up
Bitcoin’s volatility in price has risen over the past two months. creeping back up to about 60 as of MondayAccording to Bitwise’s market analyst Jeff Park, this can cause large moves on the market in either direction.
Related: Anthony Pompliano to lead new Bitcoin-buying group raising $750M: FT
Pompliano said to CNBC that those who are familiar with crypto understand volatility as a powerful indicator.
“It’s not a negative. I would be worried if Bitcoin’s volatility essentially was zero. You need volatility for the asset to go up.”
“You know Bitcoin is up 240x over the last decade. It’s about a 70% compound annual growth rate. We are not going to continue to have that level of growth moving forward,” “He said”
“But if we get something that is 20, 25, 30, 35% compound annual growth rate for the next decade, you’re going to outperform equities. And I think that’s why a lot of Bitcoiners are very excited about this asset as part of their portfolio,” Pompliano added.
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Source: cointelegraph.com
